Silver Pulls Back After Strong Rally

Key Insights

• Silver moves lower as traders take some profits off the table. 
• Gold did not manage to settle above $1950 and pulled back towards $1930.
• Geopolitical developments remain the key driver for precious metals. 

Silver ETF Declines In Premarket Trading

Silver is currently trying to settle back above $25.20, while the U.S. dollar is gaining ground against a broad basket of currencies. Meanwhile, iShares Silver Trust is trying to get back above $23.30 in premarket trading.

The U.S Dollar Index has recently made an attempt to settle above the resistance at 97.75 but lost momentum and pulled back. In case the U.S. Dollar Index manages to settle above this level, it will head towards the next resistance at 98, which may be bearish for silver and gold price today.

Gold faced resistance near $1950 and pulled back towards the support at $1930, while SPDR Gold Trust moved towards $180.50 in premarket trading. In case gold manages to stay above $1930, it will have a good chance to get to another test of the resistance at $1950, which will be bullish for silver.

Gold/silver ratio failed to settle back above the 77 level and continues to move lower. In case gold/silver ratio declines below 76.50, it will head towards the recent lows at 76, which will be bullish for silver.

Technical Analysis

Silver faced resistance near $25.60 and pulled back towards $25.20. If silver manages to settle back above this level, it will move towards the resistance at $25.40.

A move above $25.40 will open the way to the test of the resistance at the recent highs at $25.60. In case silver manages to settle above this level, it will head towards the next resistance level at $25.80.

On the support side, the nearest support level for silver is located at $25.00. In case silver declines below this level, it will move towards the support level at $24.70.

A successful test of the support at $24.70 will push silver towards the support at $24.50. If silver moves below this level, it will head towards the next support at $24.20.

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